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Budget change 'baffling'

Budget change 'baffling'
The Government's decision to fund a tax cut for high earners by cutting tax relief for charities is "baffling", a Labour MP has said.

Gareth Thomas said the Government was "taking even more money" out of communities with the tax change.

"It’s baffling that in last month’s budget, the Tory-led Government chose to justify a tax cut for millionaires by ending tax relief for charities. These rushed changes to charitable giving have created huge uncertainty for charities and voluntary groups across the country."

"Last week David Cameron staged yet another re-launch of the Big Society, but today’s news shows the reality is that his Government is taking even more money out of communities."

Earlier Ed Balls said Labour will attempt to defeat the "granny tax", the "pasty tax" and the abolition of the 50p tax by calling a series of Commons votes.

In an article for The Sun on Sunday, the Shadow Chancellor insisted it is not "too late" to reject the unpopular Budget measures, and calls on disgruntled Coalition MPs to back Labour.

But the Chancellor has given the clearest signal yet that the 45p tax rate is here to stay. George Osborne said he was "very happy" with the "competitive" top rate of tax, the Sunday Times reports.

Meanwhile, aid groups, charities and arts organisations have warned that new plans to cap tax relief on donations, outlined in the Budget, will have the unintended consequence of discouraging charitable giving .

Green Box: Budget change 'baffling'Click to open

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